Friday, October 21, 2016
Buying and Selling
Many of us have experienced this. You decide to put an offer on a house only to find out that your offer is one of several. You then have to decide whether you want to improve your offer or leave it as is, hoping it will be accepted. But what happens if you suspect there are no other offers? If the offers are being presented in person your agent will see that there are other agents presenting offers, but what if the seller wants all offers sent in by email? How do you confirm that there are in fact other offers?
Whenever I have been in this situation, I always ask the listing agent to provide the name of all agents and their brokerages who are presenting the offers. I have had some agents share that information while others have not. What if there is only one other offer in addition to yours and they ultimately pull out … a situation I found myself in recently.
Well, the answer is that your agent can and should include a clause in your offer that would protect you in such a situation. Basically, the clause would say that if there are no other offers received by a specific time the seller will let the buyer know and the buyer will have a certain amount of time to either change their offer or withdraw it. If, however, the seller accepts the buyer offer, then you would ask the seller to provide the name and phone number of the salesperson and brokerage that submitted the competing offer within a specified period of time. Your agent can then phone and confirm there was in fact another offer.
I recently had clients who placed an offer on a listing that had been on the market for over a month. We saw the property two or three times before putting an offer on it, and then when we did, we were one of three. Skeptical, I asked for the names of the other agents and phoned to confirm they did in fact have offers. Even so, it is still a good idea to include a clause in the offer in case both of those buyers walk away, leaving only your offer to be considered and potentially accepted. While that may be unlikely, it could happen. Suddenly you are no longer in competition and you probably offered a higher price than you would have had you not been in competition.
Placing an offer on a house can be stressful at the best of times, and usually is even more so when you are competing with other offers. Speak to your agent and make sure you are protected in a multiple offer situation.
When you’re ready to buy or sell in the Burlington or Oakville area, or for general real estate advice, please contact me. I can help!
Information contained herein is general information and in no way should be deemed to be specific advice. Data and information relate to and is based on the author’s local real estate market, and is subject to change at any time. This blog represents the opinion of the author. No warranties implied or expressed have been provided. Please contact the author directly if you would like advice relating specifically to your transaction.